* * * Marketing: Building Customer Relationships * CHAPTER ** 13 Nickels * McHugh McGraw-Hill/Irwin Understanding Business, 8e * McHugh 1-1 13-1 © 2008 The McGraw-Hill Companies, Inc., All Rights * * * Evolution of Marketing • Production Era - Up to early 1900s • Selling Era - 1920s-1950s • Marketing Concept Era - 1950s 1980s • Customer • Service • Profit • Customer Relationship Era - 1990s+ 13-2 * * * Marketing Strategies in Non-Profit Organizations • Find a productive • • board of trustees (Directors) Make marketing the focus; not shortterm sales Know your mission and review mission strategy regularly • Practice strategic • • • planning Carefully segment target market Train & develop volunteers for longterm Be frugal- know how to manage finances 13-3 * * * Elements in the Marketing Mix Plac e Product Marketin g Program Pric Promotio n Buy at Computers ‘R Us 13-4 * * * Marketing Process Find Opportunity Conduct Research Identify Target Market Design Product Product Testing Brand Name, Design & Price Develop Distribution System Design Promotional Program Build Relationship With Customer 13-5 * * * Product Design • Concept Test • Test Market • Package Design/Brand Name 13-6 * * * Where They Got Their Names Founder(s) • Taco Bell • Days Inn • Bose Corp • Ty Inc • Bristol-Myers Source: World Features Syndicate Glen Bell Cecil Day Amar Bose Ty Warner William Bristol & John Myers 13-7 * * * Pricing Strategies • Cost-Plus • Value-Based • Competitive • Going-Rate Source: Perdue University, May 2005 • Skimming • Discount • Loss-Leader • Psychological 13-8 * * * Other Things To Keep In Mind With Price • Payment Period • Price Differences • Target Customers • Allowances • • • • • • Regular Seasonal Bundling Trade Discounts Price Flexibility Credit Terms Source: Perdue University, May 2005 • • • Geographic Areas Volume Discounts and Wholesale Pricing Cash and Early Pmt Discount 13-9 * * * Place Decisions • Direct Sales • Reseller Sales • Market Coverage • Intensive • Selective • Exclusive • Inventory Size • Logistics Source: Perdue University, May 2005 13-10 * * * Advertising Mascots • Meow Mix Cat – 35 years • Tony the Tiger – 54 years • Toucan Sam – 45 years • Geoffrey the Giraffe – 35 years • Coca-Cola Polar Bears – 13 years • MGM Lion – 78 years Source: World Feature Syndicate 13-11 * * * Market Research Process • Define the Question • Collect Data • Analyze the data • Choose the best solution and implement 13-12 * * * Marketing Data: Least Error Method Put someone in charge Give everyone a method of collecting data Identify the right data Centralize the data Use the Data Source: cmomagazine.com, September 2004 13-13 * * * Sources for Marketing Research Information Secondary Data • • • • • Government Publications Commercial Publications Magazines Newspapers Internal/General Sources Primary Data • Surveys • Focus groups • Interviews • Observation • Online surveys • Questionnaires • Customer comments 13-14 * * * The Marketing Environment Economic Competitiv e Technolog y Custome r Social Global 13-15 * * * Why Should You Market To Women? • Women control 80% of all household • • • • spending Women purchase 81% of all products and services manufactured 80% of all checks written are signed by women 85% of all automobile purchases are influenced by women In 2005, 4.7 Million women were selfemployed Source: St Louis Small Business Monthly, May 2004 13-16 * * * Different Markets • Consumer • Niche • One-to-One • Business-to- Business (B2B) 13-17 * * * Market Segmentation • Target Marketing • Geographic • Demographic • Psychographic • Benefit • Volume 13-18 * * * Influences on Consumer Behavior Culture Reference Learning Group Custome r Cognitive Subcultur e Dissonance 13-19 * * * Consumer Decision Making Sociocultural Sociocultural Marketing Marketing mix mix Reference ••Reference groups groups Family ••Family ••Product Product ••Price Price ••Place Place ••Promotion Promotion Socialclass class ••Social Culture ••Culture Decision-Making Psychological Process Psychological Perception ••Perception Attitudes ••Attitudes •Problem Recognition Learning ••Learning Motivation ••Motivation •Alternative evaluation •Information Search •Purchase decision Subculture ••Subculture Situational Situational ••Type Typeof ofPurchase Purchase ••Social Socialsurroundings surroundings ••Physical Physical surroundings surroundings ••Previous Previous •Postpurchase evaluation experience experience 13-20 * * * Planning For More Business • What we well-and not well? • What are we really selling? • To whom we sell? • How we reach our target group? • How can we break through the clutter? Source: Investor’s Business Daily, February 9, 2004 13-21 * * * Business-to-Consumer E-Commerce as % of Sales Source: U.S Census, May 18, 2006; http://home.earthlink.net/~lindberg_b/GECGrwth.htm, accessed August 5, 2006 13-22 * * * Business-to-Business (B2B) 1.Number 2.Size 3.Geographic Concentration 4.Rational 5.Direct Sales 6.Personal Selling 13-23 * * * Top Marketing Tactics of Small Businesses Source: Investor’s Business Daily, June 1, 2004 13-24 ... August 5, 2006 13- 22 * * * Business- to -Business (B2B) 1.Number 2.Size 3.Geographic Concentration 4.Rational 5.Direct Sales 6.Personal Selling 13- 23 * * * Top Marketing Tactics of Small Businesses... Consumer • Niche • One-to-One • Business- to- Business (B2B) 13- 17 * * * Market Segmentation • Target Marketing • Geographic • Demographic • Psychographic • Benefit • Volume 13- 18 * * * Influences on... written are signed by women 85% of all automobile purchases are influenced by women In 2005, 4.7 Million women were selfemployed Source: St Louis Small Business Monthly, May 2004 13- 16 * * * Different